UK-based pharmacy chain Walgreens Boots Alliance (WBA) has been hit with a lawsuit by the DOJ (Department of Justice) over the opioid prescription scandal. The lawsuit came after the DOJ accused Walgreens of filling illegal prescriptions in December 2024, helping fuel the opioid crisis. Walgreens stock fell by over 3% on Friday.
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DOJ Takes Action Against Walgreens
According to the DOJ’s statement, Walgreens has filled prescriptions since 2012 that had no valid medical reason or were not prescribed according to professional standards. The DOJ further stated that the retailer filled prescriptions for large and unsafe amounts of opioids, including approving early refills, among other issues. Notably, opioids are a type of medication used to relieve moderate to severe pain.
The complaint also stated that Walgreens withheld important information from pharmacists and stopped them from warning each other about specific prescribers. These practices allowed millions of opioid pills and other controlled substances to be illegally sold at Walgreens, leading to some patient overdoses and deaths.
In response, Walgreens has extended its support to its pharmacists, stating that they are dedicated professionals filling legitimate prescriptions, in line with all laws and regulations. Additionally, a Walgreens spokesperson stated that the company is asking the court to clarify the responsibilities of pharmacies and pharmacists and stop enforcing rules that lack legal backing.
Walgreens’ Opioid Trouble Drags on
Previously in January 2023, Walgreens settled a lawsuit regarding its role in the opioid crisis in West Virginia. The company will pay approximately $83 million to the state over the next eight years, beginning in 2023.
In November 2022, Walgreens reached an agreement on financial terms to settle opioid-related litigation. The company has agreed to pay up to $4.95 billion over 15 years to settle opioid-related litigation, without admitting wrongdoing or liability.
Is Walgreens a Buy Stock?
According to TipRanks consensus, WBA stock has a Hold rating based on seven Hold, two Buy, and two Sell recommendations. The average Walgreens share price target is currently $11.44, which is 8.7% below the current price level.
Year-to-date, Walgreens stock has gained 34%.
